Hundreds of jobs at risk as retailer enters administration

Hundreds of jobs are under threat after another retailer has collapsed into administration.

Women’s fashion chain LK Bennett has gone into administration with the immediate closure of the Sheffield Meadowhall store. Staff have been axed at the firm’s headquarters and five stores closed in total – Liverpool, Sheffield (Meadowhall), Bristol, Liverpool and two in London.

A total of 55 people have already lost their jobs. Its website has today been taken offline.

The chain is the latest in a string of businesses to be hit by the crisis on the high street. Other big names to be hit by poor trading have included Debenhams, House of Fraser and Mothercare.

Dan Hurd, Hunter Kelly, and Craig Lewis of EY’s restructuring team have been appointed as joint administrators.

LK Bennett had its head office in in London and was founded in 1990 by Linda Bennett. The company employs 500 employees across 39 stores, 37 concessions and at its head office.

The company’s international operations are not included in the administration process.

Hurd said: “Amidst tough trading conditions for retailers, the company has been further impacted by significant rent increases and business rate rises.

“Linda and the management team therefore made the difficult decision to place the company into administration, to protect the future of the business.”

A sale process for the business is under way an trading will continue as normal.

Web sales will be temporarily suspended, to allow the administrators to work with the company’s trading partners to ensure customer orders can be processed and delivered as usual.

Hurd added: “LK Bennett is a strong luxury UK brand, the new season collection was critically acclaimed, and recent trading is up, which we hope will be attractive to prospective buyers.”